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Saturday, May 27, 2023

Has Russia accepted Pakistan’s invitation for huge LNG investment?

Calling it an “investment opportunity,” Pakistan invited Russia to invest in storage units for Liquefied Natural Gas (LNG). Pakistan’s Federal Minister for Economic Affairs said the country does not have any storage units for LNG.

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In a major development, Russia and Pakistan are ready for a new era of economic cooperation. As per reports, Pakistan invited Russia to invest in storage units for Liquefied Natural Gas (LNG).

Pakistan’s Federal Minister for Economic Affairs (EA) Omar Ayub Khan revealed the news to Russian media. Currently, the minister is in Russia to participate in the Intergovernmental Commission on Economic, Trade, Scientific and Technological Cooperation.

Since Pakistan does not have any storage units for LNG, Russia and Pakistan are looking into cooperation in this regard. Calling it an “investment opportunity,” the EA Minister said they are considering different options.

Read more: Pakistan misses shot, purchases LNG at all-time high

“Currently, there are no storage facilities for LNG in Pakistan. This is another promising investment opportunity,” the Minister said.

“At the moment, ships with LNG immediately pump gas into the pipe, and there is no place to store LNG. We are considering different options. One of the latter is a storage facility for 100-200 million cubic feet of gas. Therefore, Russian companies could not only supply gas to Pakistan but also participate in the construction of storage facilities for LNG,” the official noted.

Omar Ayub Khan welcomed Russian suppliers to bid on a competitive basis.

Russia shows interest

Russia is certainly interested in deeper cooperation with Pakistan. The Pakistan delegation, headed by the EA Minister also received a tour of the TMK facility of pipeline manufacturing.

Moscow is also in talks for a Shareholders Agreement on the $3 billion Pakistan Stream gas Pipeline Project. Sources say that the countries may sign a shareholding deal in December or in early January.

Furthermore, according to sources, Russia also showed interest to develop the LNG-based floating power plants for Pakistan and also wants to provide gas to Pakistan.

Important to note, the countries will finalize the deals today. And based on the developments, it is highly likely that Russia will accept Pakistan’s invitation for huge LNG investment. Additionally, Pakistan’s 16 members’ business delegation representing surgical, garments, food, and agriculture held fruitful meetings with Russian entrepreneurs.

Read more: Hammad Azhar gives hope amidst RLNG crisis